which shows a labor supply curve for an individual.

which shows a labor supply curve for an individual.

Questions 27 – 29 are based on the following diagram, which shows a labor supply curve for an individual.

Don't use plagiarized sources. Get Your Custom Essay on
which shows a labor supply curve for an individual.
Just from $5/Page
Order Essay

 

Wage rate

W

3

 

W

2

 

W

1

 

S

L

 

H1 H3 H2 Hours of Work

 

27. If the wage rises from W1 to W2 we may conclude that:

a. the income effect is stronger than the substitution effect

b. the income effect and substitution effects are equal

c. the substitution effect is stronger than the income effect

d. labor supply is perfectly inelastic

 

28. If this person were now willing to supply only H1 hours of work at W3, we could conclude that:

a. labor supply increased (the curve shifted to the right)

b. labor supply decreased (the curve shifted to the left)

c. the person’s preferences must have changed

d. the substitution and income effects are now equal

 

29. Of the following, which one would most likely cause this person to supply H1 hours of work at W3 rather than the current H3 hours?

a. This person’s spouse receives a substantial income increase

b. A decrease in this person’s marginal valuation of leisure time

c. Congress abolishes an income maintenance program

d. This person’s spouse suffers a substantial cut in income

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more